After 15 years of deficits, the Australian government is finally set to report its first annual budget surplus. Treasurer Jim Chalmers announced on Tuesday that the budget for the fiscal year ending June 30 is expected to record a “small” surplus of $4 billion.
The government has been able to achieve this milestone due to windfall tax revenue from a fully employed economy and elevated commodity prices. The interim budget forecast released by the government in October last year had projected a AU$36.9 billion ($25 billion) deficit this year. But with the economy performing better than expected, the budget is now set to return to surplus for the first time since 2008.
Government’s Economic Stimulus Package
The government has also implemented an economic stimulus package worth AU$90 billion ($61 billion), which includes cash handouts and infrastructure spending. This has helped boost consumer confidence and spending, leading to higher tax revenues for the government. The package has also helped create jobs and reduce unemployment, which further contributed to increased tax revenues.
Positive Impact on Economy
The return to surplus is expected to have a positive impact on the economy as it will help reduce public debt and free up funds for other investments such as infrastructure projects and social programs. It will also give the government more flexibility in managing its finances during times of economic uncertainty or downturns.
The return of Australia’s federal budget to surplus after 15 years is a major milestone for the country’s economy, and one that could have far-reaching implications for future generations of Australians. With improved tax revenues, reduced public debt, and greater financial flexibility, this could be just what Australia needs to ensure long-term economic stability and prosperity.